Bitcoin Recovers over the Weekend
Over the weekend, the much battered bitcoin market, including the benchmark BTC/USD, recovered towards $9,000 before the recovery stalled and fell lower. Bitcoin saw a steady climb above the resistance level at $6,500. Price action then took out two more key technical upside barriers at $7,000 then $8,000. However, the recovery stalled at the technical resistance barrier located at $8,900 and well below a key technical resistance barrier lining up at $9,000. Bitcoin then started losing ground as the recovery ran out of steam. Please refer to the below chart.
Traders should note that there is a bearish sloping trend line forming. Today’s trend line resistance level lines up at $8,200. You can see this trend line on the daily and four hour charts. This trend line will be a formidable barrier for the bulls to overcome as it failed, on Saturday, at $8,900 then moved lower.
Bitcoin Correcting Lower
Right now, bitcoin is correcting lower. This market is back below $8,100. Price action is now probing below the 23.6 percent Fibonacci level that retraces the last wave of gains from the low of $5,820 to the high at $8,940. It would seem the bear are not done yet and bitcoin still has some more losses in store for traders and market watchers.
There is key support lining up at $5,820. As far as resistance levels are concerned, the key upside barrier is at the trend lie resistance. This level lines up, for today at $8,200. There are several other support levels in play today. These levels line up at $7,450 then $7,250 ad finally a support level at $7,125.